not me. anyway, i enjoy it. thanks. "the five." thank you for watching. have a great weekend. see you monday. >> chris: promising -- [ inaudible ] without hurting american drivers. this is "special report." ♪ ♪ >> chris: good evening, i'm chris wallace in for bret baier. the obama administration is walking a political tight rope. aiming to deter iran's nuclear ambition with tough new sanctions, without causing a further spike in price of oil. today, the cost of crude increase to $103.15. price of gal went up a penny to $3.93 a gallon. ed henry has more.

>> campaigning in the northeast, mr. obama made bold prediction. risking that gasoline prices at home may go higher, he is moving toward on tough round of sanctions against iran to win him rare bit of congratulations from republicans. >> he is doing the right thing. >> it hit foreign entities doing business with iran central bank. it risks another spike in prices when penalties take effect in june. the president said there is a supply for those other than iran to permit significant reduction in volume of petroleum and products purchased from iran. >> leaving the door open to tapping the strategic poe

trelium -- petroleum reserve. there is a fear if the u.s. releases reserve, officials in saudi arabia could offset gain by slowing their own oil output, one reason hillary clinton met with saudi king abdullah. >> we are confident we can do it in a coherent fashion not to affect the market. >> white house officials repeatedly tried to deflect blame for high gas prices saying oil is a global commodity subject to international pressures. with iran's exports falling, 300-barrels a day in anticipation of sanctions, they have little sympathy for the political impact that the president faces. >> he finds himself in a difficult position of his own making. over time, he has made decisions to keep so much of our crude oil off the market. >> the president insists that production is up and doing all he can. on the energy front.

he was required by law to decide on the sanctions today. so he will be weighing in again on the non-iranian oil supply in six months in october on the eve of the election. >> ed henry reporting from the white house. thanks for that. >> chris: unemployment rates fell in most states but labor department says rate declined in 2 states and rose in 8. unchanged in 13 states as well as washington, d.c. stocks were mixed. nasdaq lost four. on sundayia, pan will cut the corporate tax game and that is bad for america's competitive situation. jim angle reports on the impact of the bids. >> we are number one. but no one is happy about it because the u.s. says they hurt, not help. >> america is number one in a category we don't want to be

number one. the highest corporate tax rate in the world. our competitors lower the tax rate. to be competitive. >> it's 35% with state income and sales taxes. effective rate. [ inaudible ] this weekend, japan lowers the corporate rate by ten points leaving the u.s. head and shoulders above others. >> they said they would attract capital and carriage companies to invest to create job. >> u.s. tax rate is unchanged in recent years the biggest economy, g-7, countries such as germany, france and great britain have been lowering rate. others fallen with average rate of 25%. >> great britain dropped theirs to 24%. canada just dropped their

corporate rate down to 16%. ireland is 12.5%. china is 25%. >> the effective tax rate of u.s. corporations is low compared to competitors. >> a lot of countries don't have the same deductions we provide corporations here. >> even president obama proposed reducing the rate to 25% as the vice president mentioned. >> for years, american manufacturers faced one of the highest tax rate in the world. >> reduce by 20%. not reduce to 20%. the president wants to propose minimum tax on the all

overseas profit of the u.s. company, mr. will they bring them home or not. that would mean a tax increase when other nations reduce them. they have to compete in tax rate to compete in business, the white house argues. >> chris: more in the panel. the u.s. ambassador in moscow is openly wondering if he is the target of russian spies. chief intelligence correspondent catherine herridge explores that possibility and the impact on an already strained relationship. >> after initially downplaying the confrontation between ambassador mike mcfallen, the obama administration officially complains to moscow of pattern of harassment. >> there are a number of incident since the arrival there that caused us to have concerns about the security and safety. as following nil normal protocol we raise it with ambassador of russia. >> he met with the human

rights activist in moscow thursday he found scrum of russian reporters waiting for him. they were kremlin friendly tv station. >> chris: know >> he took to twitter to question whether he was being spied on. and analysts he is the target of the russian controlled state media and has been since he set foot in moscow. >> a few days after he arrived there was a documentary shown where he was accused of being sent over by the c.i.a. >> the white house hit reset

on cremlip, the two nations are far apart on sanction for the nuclear program. >> some analysts they haven't seen the crude anti-american sentment since fall of the soviet union 20 years ago. >> chris: more on this with the panel as well. thank you. federal regulators approved plans to build nuclear reactoractors in south carolina. only the second project toteto get the green light in a generation. >> they held closed door deliberation on obama care and likely cast votes on how to rule on the landmark case but they likely pass the opinions back and forth for months an possibly change them in the process. until the ruling comes down to the end of their term in late june. dead you foot the bill for a

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>> chris: a federal judge today upheld wisconsin's law curbing collective bargaining rights. sided with unions in one area, dues could automatically be withdrawn from paychecks. this is as republican governor scott walker will face recall election this spring after more than 900,000 signatures were collected following the push against the bargaining rights. the recall vote will be held on june 5. republican presidential candidates are in wisconsin i head of tuesday's primary. mitt romney heads in the state stronger after a series of high profile endorsements. chief political correspondent carl cameron on the state of the race. >> house budget committee chairman to the growing momentum toward unity.

>> what we need is mitt romney to be the next president of the united states of america. >> ryan's support could help romney. the primary is tuesday. turned up the heat on the rivals to set aside. >> this could become counter productive. we need to coalesce as conservatives around romney to focus on the task at hand. defeating barack obama. >> the latest mar rist poll has romney leading santorum by seven points. romney has more than half of the delegates needed for nomination, double that of santorum who returned to popular attack on romney as an out-of-touch rich guy. >> we need someone who can talk and relate to that move. if he doesn't talk about, you know, being the ceo of a company. jokes about firing people. >> by contrast, nute gingrich

downsized all but declared romney as the nominee. >> i'm confident the day he gets 1144 delegates we will all unify and support him. but he has to finish earning the delegates. that's how the process goes. >> romney on the stump focus on president obama exclusively now. en the phone, he is tapping in to scott walker and the g.o.p. battle with big labor in a robo call targeting santorum's pro-union. >> santorum supported big labor and voted against the right to work legislation against his time in washington. >> there is a time when to hold them and time to fold them. it's time for people to get behind this good man. >> time for next week, romney is favored in all three weeks. wisconsin in all three races. wisconsin has 39 nominating delegates and then 37 and 17.

santorum could win delegates but romney is expected to gain the most next week. >> chris: vice president biden let lose at a chicago fundraiser. biden said he is confident the president will win re-election but if he is beaten it won't be by a republican channeler but something happening in the euro zone or something happening in the gulf. he then added, "i never had an interest in being a mayor" because that is a real job. you have to produce. that's why i was able to be a senator for 36 years. indiana republican senator dick lugeer avoided embarrassing confrontation with the local election officials but correspondent steve brown reports he faces a tough re-election channel from the right. >> i am a hoosier. >> but the six-term republican senator ability to vote in indiana had been in doubt. election officials recently ruled lugeer's only home of 30

plus years in the d.c. su push of mclane, virginia, made the indiana voter registration invalid. late this morning, 600 miles away in an indianapolis courthouse. >> we agreed to disagree about the original decision. and we just semily put that behind us. >> with a late settlement, hammered out between attorneys. lugeer will reregister to vote at the family farm. >> people of indiana recent this kind of interference. an i think they are going to illustrate that with their vote. >> recent partisan polls unchallenged by lugeer's campaign suggest the opposite. >> citizen united survey has lugeer down to a single digit advantage in the primary less than seven weeks away. in a state where all campaign buttons are valuable political memorabilia, lugar is in trouble. residencesy issue is a big reason why. >> it's caused a lot of people to think and wonder if maybe it's time to wrap things up. it's an issue that is hanging

out there. >> i do appreciate you coming in. >> the benefactor is the primary opponent, state treasurerer richard mur dock. >> running as someone with a grandfatherly image in indiana. the strategy is go out on day one and beat up on grandpa, that would have backfireed tremendously. >> facing a 13-1 cash disadvantage, murdoch got a lot of help. >> what has lugar done? >> corporate growth has $1 $1.8 billion tv add buy running. with more on the way. late this afternoon, another chapter in lugar residency woes. campaign concerning that the senator wrote a personal check for $14,000 to the senate travel office to reimburse it for improperly billed travel by lugar to his home state, where he doesn't truly have a home. chris? >> chris: steve brown reporting from a rainy indianapolis. thank you for that. the funeral director who

oversaw the burial of trayvon martin says there were no marks on the florida teenager's hands, face or body other than the gunshot wound that killed him. autopsy results have yet to be released. the shooter, neighborhood watch volunteer george zimmerman has not been charged in martin's death. well, still ahead -- why the government can turn off your cell phone against your will. but first, international fight over airline taxes. there's another way to help eliminate litter box dust: purina tidy cats. our premium litters now work harder to help neutralize odors in multiple cat homes. purina tidy cats. keep your home smelling like home.

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>> chris: what of usama bin laden's widow told investigators he lived in five safe houses while on the run in pakistan and fathered four children, two born in government hospitals. the details raise new questions about how bin laden was able to remain undetected

for so long. before he was killed last may in u.s. raid. united nations continues to urge syrian forces to lay down their weapons, to end that country's year long crisis. as you can see, the amateur video shows shelling the city of homs. protesters were trying to mark land day when six were killed protesting the land policy. leland vittert has more. >> the nearly 1,000 markers trying to make it from the westbound town of ramallah to jerusalem didn't get far. met by soldiers and riot

police, protest of israel's 1976 complication of land for a jewish town deteriorated quickly. trying to push them down to absecure the israeli's view. you can see the israeli's advancing here. we have tear gas canisters and it's like this right now. you don't have to worry about the rubber bullets coming as we try to stay out of line of fire back here. a jailed palestinian leader said the peace process has not given them their own state and taking to the street was their only option. >> do you think throwing rocks and doing this will help your cause? >> yes. >> this is the land for us. >> arab israelis protested in east jerusalem, turning the street with an old city to running battleground.

israel's response, riot horses and hand-to-hand combat. in gaza, demonstrators shot by israeli troops. in the west bank, palestinian medics treated more than 30. it's impossible to tell if it will turn into an intan fa da, but it's all here. rising unemployment and deteriorating economy in the west bank. angry youth and government willing to meet violence with violence to keep the situation from deteriorating. in the west bank, leland vittert, fox news. >> chris: as the summer travel season approaches americans may have another source of concern. besides the crowded planes and lost luggage. as part of a plan hatched on the other side of the atlanti atlantic, some flights could cost more to cover bar con emissions.

chief washington correspondent james rosen explains. >> reporter: european union officials told fox news they got tired for world to take collective action to curb air pollution caused by the aviation industry to zo the e.u. placed the industry under the e.u. admission trading system. a cap and trade program that means most transatlantic carrier pay extra every time they use a european airport. >> if you look at the emissions of the planes that fly between, what we talk about here, internationally aviation pollution. it's equal to middle size country of united kingdom or canada. >> they say they can avoid fees using the sustainability biofuel. modern idahoing fleet or purchasing newer -- modernizing fleets. they call them attacks, plain and simple. >> it will go to the press travel and hurt an industry that has lost 160,000 jobs in the last ten years.

we will see the cost of ticket goes higher. i could impact the economy. >> india and china barred their airlines complying with the e.u. policy. similar measure passed the u.s. house and has some bipartisan support in the senate. >> this is an issue of u.s. sovereignty. we are american airlines are being attacked for flights on the united states. >> american airlines and united, continental backed by the lobbying group sued the e.u. but the plaintiff this week dropped the case saying they are instead pinning their hopes for a resolution on the obama administration. in washington, james rosen, fox news. >> chris: being on food stamps is absolutely a good thing in some places. we'll tell you where and why next on the grapevine. this congressman is proud of his own body. but who paid for it? people here sure are friendly

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thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. >> chris: now fresh pickings from the political grapevine. the obama ladies are on a spring break trip out west and earlier this week, michelle and her daughter 2 daughters hit mount rushmore. now they moved on to las vegas. it's an interesting choice considering comments mr. obama made about the city early in his presidency. in 2009, the president said corporations receiving federal bail-out money shouldn't hold conventions in las vegas on the taxpayers' dime. a year later, he urged fiscal

responsibility saying you don't blow a bunch of cash on vegas when you are trying to save for college. as is customary, most of the bill for this trip is picked up by the taxpayers. so the obamas will cover personal expenses. report from citizens for responsibility and ethics in washington highlight some unusual campaign spending by illinois republican congressman aaron shock. shock appeared on the cover of "men's health" magazine last year accused of using campaign money to pay for than $300 to300 p90x, a company that makes exercise videos. he also reimbursed himself for $150,000 in the last two election cycles including a stay at a five-star hotel in greece. the congressman chief of staff says the reimbursements were accidents that have since been corrected. finally, promotion by an alabama nightclub isn't getting everyone's stamp of

approval. next week, the rose supper club is holding what is called food stamp friday. remoteers have been circulating this flier that says the attendees only have to pay a $5 cover charge if they show a food stamp card. one club employee tells the daily caller the club has received complaints about the party's theme. do you want the government to shut down your cell phone in the event of an extreme threat? precise definition of "extreme" and the possible free speech violations are just two examples of a city controversial plan. correspondent claudia cowen takes a closer look. >> the bay area bark got wind they were on a train platform and get further instructions in text message. bart decided to shut off the cell phone service underground. thwarting the planned protest and igniting a firestorm of controversy around the first

amendment. >> some even compared bart to regimes that try to quell social unrest silencing electronic communication. after weeks of debate, bart became the first transit agency in the country to adopt specific guidelines for jamming cell phone service. >> our cell phone policy is set up for life, safety and law enforcement purposes only. that is the only time we will end up shutting down the cell service. >> a bomb that could be detonate by a cell phone, a hostage situation, threat of a train being stopped or damaged would all qualify as valid reasons. under this policy, cell phone service would not have been turned off last august, but they're not convinced that the landmark policy will protect anyone. >> there will always be real true emergencies where maybe bart has to act. but the policy is vague and could capture first amendment speech. >> they petitioned to the

federal communication commission to clarify the rule and state that the government cannot shut off the cell phone service to squash dissent. it could come in the next few weeks to give guidance on all public agencies when it is and isn't okay to intentionally jam the line. in san francisco, clawia cowen -- claudia cowen, fox news. >> megawilliams is at world record $640 million. that is about 176 times more likely you will get struck by lightning than win. folks in 42 states and washington, d.c., i know one of them, are lining up with dreams of beating the odds. the drawing is tonight. can the world have the highest taxes and stay competitive? the panel weighs in ahead.

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highest corporate tax rate in the world. >> i think there is general agreement. the president agrees that we should work to reduce that corporate tax rate, bring it down, make it more competitive internationally. >> chris: republicans senator john varasso democratic congressman chris van hollen reacting to the news that the american businesses must face. bring in the panel. stephen hayes. susan mulligan of u.s. news and world report. and syndicated columnist charles krauthammer. a not so funny april fool's joke on sunday because japan officially on sunday is lowering its corporate tax rate. it has been the highest in the world. guess what? when they lower theirs, the u.s. at 39.2% will be the highest corporate tax rate combination of federal and state taxes in the world. steve, how big a disadvantage for american companies? >> significant disadvantage. and the way you know that it's problematic is that there is

widespread agreement in washington that this is a problem. you have the president in the 2011 "state of the union" speech said he wanted to lower the corporate tax rate. republicans who have been talking about this issue forever. a big disadvantage for businesses because capital is mobile. capital can go wherever the lowest level of taxation is. we saw this in united kingdom they shifted and the businesses were leaving to settle places like ireland. half a percent corporate tax rate. you have seen this. this is not theoretical. this is happening. the best example of what lowering corporate tax rates can do is in canada. where the rate is 8%. in the late 1980s they lowered to where it's 15% now. you see incredible economic growth in canada. most importantly the revenues stayed roughly the same over the time frame. >> chris: susan, weigh in on this. you hear democrats all right, the official tax rate is 35%. but when you take all of the

loopholes then it's a much lower effective tax rate. >> that is absolutely the case. i think that is what is frustrating for a lot of people looking at this and they are reading stories about some companies with a net gain in taxes because they have, you know, very smart cat about thes and tax lawyer -- smart accountants and tax lawyers and they do it legally. reuters did analysis of the annual reports of the 30 companies in the dow jones/industrials average and found, i believe, 13 of them paid a lower effective rate than the 28% that president obama proposed in his budget. it's crazy. tax rate sounds, to most of it, it sounds like insane amount of money to pay in your corporate pocket, if your effective rate is down, one was 2.7%, then that is not fair to other companies as well. if you take the loopholes out of it, you absolutely could lower the rate and not reduce revenue. >> chris: having said all of that, president obama now proposed reducing the top corporate tax rate from 135%,

federal tax rate to 28%. this week on the campaign swing, joe biden, the vice president talked about it. >> we are to create what is called a global minimum tax, because american taxpayers shouldn't providing a larger subsidy for investing abroad than investing at home. [ applause ] >> chris: charles, isn't that one of the big problems? that high corporate tax rates give american companies incentive to do business not here in this country, but overseas. and what do you make of president obama proposing this 28%, biden said 20% cut from 35% to 28% now. >> you heard van hollen said the president agrees we should work to reduce the corporate tax rate. well, he has been in office for over three years. this is the easiest of all the forms to do. as steve indicated. it's the one area where you get the democrats and the republicans agreeing. it's unbelievably inefficient

and unfair. even says well, the effective tax rate is lower if you work the loophole. but the loophole defeat the purpose of low taxes and introduces unfairness. of course, you are a foreign investor, you have to spend all the effort and time and money hiring sharp lawyers and accounaccountants. the obvious answer, waiting now for the entire term of obama's presidency lower the rates. eliminate the loopholes. the republicans call it crony capitalism, the democrat corporate handouts. but he hasn't done a thing. what does he do? yesterday he gave a speech in the rose garden to denounce one loophole to five oil companies as a way to deflect attention about the high gasoline prices. and imply that it's the fault of the rich oil companies. in fact, what he ought to be doing instead of demagoguing and thinking about his re-election is to propose something concrete, in which you get reform across the

board. you lower the rates. eliminate loopholes. >> chris: i want to switch to another interesting story international finance story we reported on earlier in the program; that is, some european countries are getting serious now trying to tax the carbon emissions of airlines that fly over their air space the u.s. airline filed suit on germany that is going to have a tax for the airlines, itself. >> this is not a time in europe i'd look to raise taxes on anything. this is unlikely to have an effect on what is at the root of the proposal. it's not going to do anything if you are just talking about europe. you imposing taxes.

even though the taxes start low, but how often do tax goes up? >> i agree. you have seen push back from a variety of countries that are not often on the same side. china has already canceled or threatening to cancel air bus orders and so forth. the europeans add we can't just put the tax on the european carriers because it puts them at a come pettive disadvantage with other carriers but i can see the irritation by other countries. >> in the end, it will be, in the end europeans will cave on this. if the chinese and the indians unilaterally opt out, no way we'll muck around with this. part of a larger carbon trading scheme. unbelievable waste of money, with no effect what so ever --

whatsoever. this as the rest of it will go. >> could have been briefer but that was good. >> chris: by your standards it was wonderful. [ laughter ] >> you're piling on and wasting more time. >> chris: even more true. we have to take a break here. up next, the friday lightning round. [ male announcer ] for making cupcakes and deposits at the same time. for paying your friend back for lunch from your tablet. for 26 paydays triggered with a single tap. for checking your line, then checking your portfolio. for making atms and branches appear out of thin air. simple to use websites, tools, and apps. for making your financial life a little bit easier. chocolate lemonade ? susie's lemonade... the movie. or... we make it pink !

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>> chris: every week, viewers vote for your choice online in the friday lightning round poll. this week, jane fonda won playing nancy reagan. i knew that's what people want to talk about to explain they are making a movie about a

white house butler who served eight presidents over decades. jane fonda there is talk, not confirmed up yet, is in talks to play nancy reagan. jane fonda of hanoi jane fame. questions, starting with you, hayes. anything wrong with that? >> look, i don't get terribly exercised at hollywood being hollywood. this is what hollywood does. they create a controversy. they generate publicity. get people to talk about a movie that probably nobody would have been talking about at this point in production. they call it obsessed. yes. is it offensetive have jane fonda play nancy reagan? i think it is. >> maybe i'm giving a woman's perspective, but jane fonda has become known more for the exercise video and being in phenomenal shape than hanoi jane. i'd be happy at nancy's age that jane fonda might play me

in a movie. >> offensive and trivial. that's hollywood. what do you expect? >> chris: first, jane fonda is being a good actress also in being in good shape. nancy reagan did a great thing. she was there when the butler retired. and at the final state dinner she said you are a guest, other people serve you. i have a feeling it will be a nice stark turn for jane fonda and nancy reagan. get to the u.s. ambassador to russia, who has posted tweets wondering whether the russians hack in the e-mail spying on them some way. he shows up at a variety of places. the tv is there. what does this say at a time when medvedev says you have to give me space here? >> extremely serious.

he is not likely to create a controversy where there is none. the fact he made this public is a big deal. a really big deal. >> it was deliberate on the ambassador's part to let them know he knew about this. my neighbors told on me to the landlord, people who opened my mail. he is letting them know i know what you are up to and it embarrasss them. puts the unite united states ina approximation of power there. >> charles? >> the difference is there wasn't the ambassador neighbor. the putin government that harassing him. it was the state department as

we saw speaking of harassment and question about his security and safety. when the president is lovey doy confiding in the russian president. you wonder if there is a disconnect between the comedy at the top and the harassment happening on the ground. >> chris: finally, let's talk about the situation in indiana. the indiana senator, richard lugar residential problems. running for re-election. the county election board said he could not vote using the address of a house he sold years ago. in the washington metropolitan area. but he can reregister using the lugar family farm in indiana. what do you make of this?

>> he said it's not calling the family residence because i don't reside there. he told the house he was registered at in 1977. that's emblematic of the changing nature of the u.s. senate. he has been here for a long time. by all account a good man but the fact he faces a serious challenge for murdoch who is a smart and serious conservative is the bigger problem now. >> chris: he was asked about the situation. look at what he had to say. >> why in the world anybody would come in at this point after 36 years to challenge the right of my wife to vote in election where we are an active participant. >> chris: this is interesting. culture clash between a lion of the senate on foreign policy issue and the new guard, the new way of seeing things. >> it's hard to defend his, you know, behavior here and

not really living in indiana. the fact he spent so much time here is part of why he is as effective as he is. close relationship with the senator and the chairman of the committee. being here is part of that. >> chris: 36 years in the senate, the third longest serving senator. >> right now, something of a disadvantage for him. the residence, politics he is a moderate. as you said, he is an old lion. there is an anti-incumbent and anti-washington sent in the the country. he is in a close race. i have a soft spot for him because he is the only senator who officially supported an idea i raised year ago ago to raise gas price and commensurate drop in payroll tax. you got 1 out of 100 on your side you stick with him.

but then again, i'm not a hoosier and i don't have a vote. not sure i can influence it. >> 15 seconds left. who among us paid or bought mega millions ticket? >> i suspect it was you, chris. >> chris: i did. anybody else? >> chris: this may be my final show because when i win the $640 million. i don't have anything better to do but i'll be back here on sunday doing my show. >> in your acceptance speech be brief? >> chris: by your standards. that is it for the panel. stay tuned to see the george and barbara and mitt show. [ dennis ] switch to allstate. their claim service is so good, noit's guaranteed. [ foreman ] so i can trust 'em. unlike rdy. dolr for dollar, nobody protects you like allstate.

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call to report any suspected fraud. we're cracking down on medicare fraud. let's make medicare stronger for all of us. then don't get nickle and dimed by high cost investments and annoying account fees. at e-trade, our free easy-to-use online tools and experienced retirement specialists can help you build a personalized plan. and with our no annual fee iras and a wide range of low cost investments, you can execute the plan you want at a low cost. so meet with us, or go to etrade.com for a great retirement plan with low cost investments. ♪ >> chris: finally tonight, when president bush 41 and his wife endorsed mitt romney this week that got all the attention. but there was charming talk about cabinet chairs and first ladies we thought you might like to see. >> was this the chair you sat

in as president? >> you are in the first chair. >> i sat in all of them. had to buy them all i think. >> you are in the president's chair. a little high. that is the president's chair. >> this is a little lower. >> on the back what it was, maybe u.n. or maybe vice president. >> i don't want you to neglect the fact that mit's wife is going to make the greatest first lady. next to lawyer are a. laura. >> chris: we are glad they got all that straightened out. join me this weekend when i sit down with rick santorum on "fox news sunday." we will talk about the key issues. and we want it leave you with the real le important news. the fox family welcomed a new member this week. this program's executive producer with wife dominique had a baby boy late wednesday night braeden